IRS notices
Penalty abatement
Penalty abatement is the IRS removing or reducing a penalty, usually for a first-time issue, reasonable cause or a statutory exception.
The IRS can remove some penalties. It calls this penalty relief. You may qualify if you tried to follow the tax laws but could not because of circumstances beyond your control.
The IRS lists three types: first time penalty abate and administrative waiver, reasonable cause, and a statutory exception. First, check that the penalty is correct. If it is not, follow the notice. Late filing penalties often follow a missed tax extension or unpaid estimated tax payments. Relief is not guaranteed. The IRS problems page lists other options.
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